5G Mobiles Account For 22% Share Of India's Smartphone Shipment: CMR

NEW DELHI- Shipment of 5G smartphones in the country continues to gain traction and such devices accounted for 22 per cent market share in the third quarter of 2021, according to CMR.

As per CMR's India Mobile Handset Market Review Report for Q3 2021, more than 20 5G-capable smartphones were launched over the course of the quarter.

"Across price tiers, 5G smartphone shipments are gaining in strength, and contributing to increased affordability, availability and accessibility.

"With smartphone brands, such as OnePlus, Oppo, realme, Samsung and vivo prioritizing 5G, and consumers seeking to future-proof themselves, 5G continues to gain momentum," CMR Analyst-Industry Intelligence Group Shipra Sinha said.

Sinha added that together, these five brands shipped 5G smartphones in excess of USD 3 billion during the September 2021 quarter.

Vivo led the 5G smartphone segment with an 18 per cent market share, followed by Samsung at 16 per cent, as per CMR.

For the entire year, CMR estimates suggest a potential 5-8 per cent year-on-year growth in smartphone shipments.

In the fourth quarter, CMR anticipates the ongoing supply constraints, high components and logistics costs, and consequent high retail costs, to continue challenging smartphone brands.

On the demand side, aided by the availability of attractive affordability schemes, smartphone upgraders are seeking better-specced 5G-capable phones, CMR said.

In the festive season sales, the strong consumer demand for smartphone upgrades has been met by aggressive offers in the value for money and premium smartphone segments from smartphone brands, it added.

"In Q4 2021 and beyond, the supply chain constraints will continue to persist. Smartphone brands that are able to augment their component supplies, and plan in advance their market outreach strategies, will be able to succeed.

"CyberMedia Research (CMR) anticipates consumer sentiment to remain robust during this period, driven by India's growing digital transformation," CMR Analyst (Industry Intelligence Group) Anand Priya Singh said.

In the third quarter of 2021, smartphone shipments in India posted a 47 per cent quarter-on-quarter (q-o-q) growth on the back of robust consumer demand, and despite persistent supply constraints, CMR said.

About 50 million smartphones were shipped in the quarter under review. Xiaomi led the market with 23 per cent share, followed by Samsung (18 per cent share), Vivo (15 per cent), Realme (15 per cent) and Oppo (9 per cent), it added.

"For consumers, smartphones remain essential life drivers. As India emerged from the second pandemic wave, consumer demand for smartphones continued to remain strong.

"Smartphone brands sought to navigate the prevailing supply chain dynamics, by augmenting their stock supply. In doing so, they were able to offer attractive promotions and deal offers in the extended festive season sales," Sinha added.

According to CMR, OnePlus shipments recorded a significant growth of more than 68 per cent y-o-y. Apple shipments recorded a 32 per cent growth y-o-y. Apple topped the super-premium (Rs 50,000-1,00,000) segment with an 84 per cent market share.

The strong market performance by older-generation iPhones, including the Apple iPhone 12 and iPhone 11, contributed to Apple's success, CMR said. The iPhone 12 and 11 together accounted for three-fifths of iPhone shipments, it added.

Transsion Group brands' (Itel, Infinix and Tecno) overall mobile handset shipments grew 18 per cent y-o-y, while smartphone shipments grew 36 per cent y-o-y. Itel smartphone shipments grew 44 per cent y-o-y, while that of Tecno and Infinix grew 33 per cent and 32 per cent y-o-y, respectively.

The feature phone segment declined 21 per cent year-on-year with 24 million such phones being shipped in the September 2021 quarter. The 2G feature phone segment declined 27 per cent y-o-y, with itel accounting for 27 per cent, followed by Lava (19 per cent) and Samsung (14 per cent).

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